Japan Firms Scramble to Secure Dollars

While a number of Japanese exporters sold dollars too early as the yen has weakened, potentially nursing foreign exchange losses, a sharp fall in the yen has also prompted some major Japanese companies to rush to secure dollars in recent months.

Case in point: All Nippon Airways Co., which pays for its fuel mainly in dollars, has raised its foreign currency hedge ratio for this fiscal year at its fastest pace in at least four years. Over two quarters ending last December, Japan’s biggest airline raised its foreign currency hedge ratio for this fiscal year to 40% from 25%.